The Gazette 1983

GAZETTE

JANUARY/FEBRUARY 1983

Revised Income Tax Appeal Procedures Mr. J.J. Ivers, Director General, The Incorporated Law Society of Ireland.,

promise was also made by the Chairman that notification of High Court and Supreme Court judgments would be supplied in advance of the printing of a tax leaflet. A summary of the material issues in three cases where Appeal Commissioners determinations have been accepted by the Revenue Commissioners is attached. I am also enclosing a short note on a Supreme Court judgment handed down on 4 December, 1981, on the question of the scope of a tax charge orr the profits of a "dealer in cattle". Yours sincerely, S.M. O Ceallachain, Oifig na gCoimisinéirí Ioncaim, Caisleán Bhaile Atha Claith, Baile Atha Cliath 2. The taxpayer, a bank official, received a payment of £100 from his employer in accordance with a practice .whereby such payments were made to officials of a branch who had been involved with armed raiders. It was claimed on behalf of the taxpayer that the payments made by the bank in such cases were voluntary and in the nature of testimonials on personal grounds to employees who had suffered distress and that such sums were not chargeable emoluments for Schedule E purposes. The Appeal Commissioners upheld the taxpayer's contentions. 2. Relief for certain bridging loan interest - Section 32 of the Finance Act, 1974. The point at issue concerned the amount of additional interest relief allowable under the provisions of section 496, Income Tax Act, 1967 (as amended by section 29, Finance Act, 1974) by virtue of section 32, Finance Act, 1974. The Appeal Commissioners determination of the effect of the statutory provisions was as follows:— (1) Additional relief is allowable under section 496 of the Income Tax Act, 1967, in accordance with the provisions of section 32, Finance Act, 1974, up to the appropriate ceiling on relief as set out in section 496. (2) Where the period of twelve months in respect of which the additional relief is due extends over two income tax years the ceiling figure is to be apportioned on a time basis over the two years. Appeal Commissioners' determinations accepted by the Revenue Commissioners 1. Lump sum payments made by a bank to employees of a branch where an armed raid had taken place.

25.10.82

Dear Mr. Ivers, The Chairman has asked me to write and correct an apparent misunderstanding which has arisen of his remarks at the discussion on 16 June, 1982, concern- ing revised procedures being introduced by the Revenue Commissioners in connection with the con- sideration of further proceedings by High Court action following a determination given by the Appeal Commissioners in favour of a taxpayer. The Chairman wishes to emphasise that decisions made by Judges of the Circuit Court on the re-hearing of tax appeals were specifically excluded by him from the new operating procedure. The principle behind the new procedure is that the Revenue accept the position of the Appeal Commis- sioners as the arbiters of disputes between the Revenue and the taxpayer as to the taxpayer's liability. The Revenue will not, therefore, seek to have the Appeal Commissioners' decisions upset by taking an appeal to the High Court (except in special types of cases, primarily tax avoidence cases). Where, however, the taxpayer refuses to accept the Appeal Commissioners' decision and seeks to have it upset by calling for a rehearing by the Circuit Court Judge, the Revenue reserve the right — in the event of the Judge giving a decision contrary to that of the Appeal Commissioners — to take the case to the High Court with a view to having the decision of the Appeal Commissioners restored. Yours sincerely, S. M. O'Ceallachain, Oifi^ na gCoimisinéirí Ioncaim, Caisleán Bhaile Átha Cliath, Baile Atha Cliath 2.

Mr. J. Ivers, Director General, Incorporated Law Society of Ireland.

9.11.82

Dear Mr. Ivers, I am directed by the Chairman to refer to the discussion on 16 June, 1982, at which representatives of your Society were present concerning the introduction of revised procedures by the Revenue Commissioners in relation to determinations of appeals by the Appeal Commissioners. During the discussion the Chairman undertook to advise your Society of determinations made by the Appeal Commissioners and accepted by the Revenue Commissioners which were of general application. A

(3) The excess of any interest paid during the period of twelve months on any loans to which section 32, Finance Act, 1974 apply over the relief allowable by virtue of the section is not available for any further relief under section 496. (continued on p. 22)

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